On September 23, 2013, MIGA issued guarantees of $23.9 million covering shareholder loans by Porsche Corporate Finance GmbH of Austria to Porsche Mobility TOV (PM) in Ukraine. The coverage is for a period of up to 15 years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project will refinance the subsidiary’s activities in financing Volkswagen and Audi vehicles and support their growth in Ukraine in an environment of limited liquidity. PM will provide financial services (automotive loans) mostly for micro, small, and medium enterprises (MSMEs) and individuals who might not qualify for bank loans or would find them unaffordable.

The euro-zone crisis has had a severe impact on domestic banks in Ukraine and the sector is still facing challenges. A high non-performing loan ratio makes access to new financing particularly onerous as high interest rate levels and collateral requirements make it difficult for MSMEs and individuals to qualify for fresh credit lines. The project supports the development of the private sector in Ukraine by providing affordable finance in the form of leasing and loans to businesses and individuals.

The project is consistent with the World Bank Group’s Country Partnership Strategy for Ukraine, which emphasizes the need to attract FDI to improve productivity and create new jobs in the private sector. It also aims to contribute to the World Bank Group's strategy of providing targeted financing for MSMEs.